Failure to notify extension of sunset date for OTP property

Discussion in 'Legal Issues' started by Melmelc, 27th Dec, 2019.

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  1. Melmelc

    Melmelc New Member

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    Hi all,


    Just wanted everyone’s opinion on this.


    I bought an OTP apartment 3 years ago and the original sunset date was November 2019.


    The vendor extended the sunset date for 12 months so now it is November 2020 for reasons beyond the control of the vendor.


    However, they failed to notify me as they sent the notice to my previous solicitor. I only found out about the extension on 16th December when they forwarded the notice to my current solicitor after we’ve been chasing them up for weeks.


    My question is does this give me ground to request to rescind the contract?


    Any thoughts would be appreciated. Thanks
     
  2. Marg4000

    Marg4000 Well-Known Member

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    I doubt it.
    It was probably your responsibility to update your change of contact address for any notices.
     
    Mike A likes this.
  3. euro73

    euro73 Well-Known Member Business Member

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    Get legal advice - you really need to find out whether

    1. The contract does contain a specific condition allowing the vendor to extend the sunset date without your consent and only requiring them to by notify you in writing OR
    2. The contract does not contain a specific condition allowing them to extend the sunset without your consent and only requiring them to by notify you in writing.

    Without a specific condition allowing them to extend , you may well receive advice that you have a right to rescind the contract when the completion date/ sunset date is reached
    Certainly, under those circumstances any extension the vendor seeks to the completion date/ sunset date would usually require that they produce a deed of variation and present it to you for consideration. The deed of variation would specifically seek to vary the contract by extending the completion date/sunset date. You could use that as an opportunity to negotiate - at the very least, even if you didn't want to try and screw them on price , you'd certainly want them agreeing to cover any legal costs your solicitor is going to charge you for reviewing it ... after all, they have created the circumstances that require you to incur the additional legal expenses. And they will want to keep all their pre sales wherever possible, in order to keep their finance...so they should be agreeable to that

    But if there is a specific condition allowing them to extend ( and that's not uncommon. Typically, if and when these sorts of conditions are included in OTP contracts they are usually limited to ONE extension of up to 12 months - but not always...some vendors try to put never ending extension rights in place ) then you probably have no recourse.

    It will come down to whether the contract allows them to extend or not , and the method they are required to employ to trigger their rights to extend. For example - are they required to advise you in writing 14 days before the sunset lapses, 1 month before, 2 months before etc.... ? So you really should get legal advice....

    Do you have a copy of the contract ? Have you looked at it to see whether the contract contains a condition allowing them to extend the sunset ?
     
    Last edited: 27th Dec, 2019
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    What does the contract say?
    Did you notify them of the change of soliciitor? Was the notification served in accordance the terms of the contract
     
  5. Melmelc

    Melmelc New Member

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    The contract says they are required to give written notice but did not specify whether there is a time restriction for that.

    My solicitor is the same except she moved companies and the notice was sent to her old workplace...
     
  6. Melmelc

    Melmelc New Member

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    The contract allows them to extend it but just says they need to provide written notice, does not specify when they need to give it

    also does not specific how long they can extend it by, it states “not later than the original date by more than the period of the delay certified to by the vendor”

    Does this mean they can extend it again?
     
  7. Trainee

    Trainee Well-Known Member

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    Your solicitor should have explained all of this before you signed. Does it seem unfair? Sure but you signed it and this is why a lot of people avoid otp completely.
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sounds like you contracted with a company not a specific solicitor so her moving companies would have required notification.

    Sounds like they could extend as long as written notice is given and this is what happened.

    Seek specific legal advice
     
    Beano likes this.
  9. euro73

    euro73 Well-Known Member Business Member

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    Gotta go and get the proper advice .
     
    Beano likes this.

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